If you're renting in New Zealand, knowing about the rental bond is crucial. This guide provides clear insights into what a rental bond is and how it works, whether you're a landlord or a tenant.
What is a Rental Bond?
A rental bond is like insurance for landlords. Tenants need to pay this bond at the start of their lease, and the money is held by Tenancy Services. The bond covers unpaid rent, any damages, or other potential costs. Paying a bond is standard practice in Auckland and throughout New Zealand, offering financial security to landlords while informing tenants of their responsibilities.
How Much is the Bond?
You should budget for three to four weeks of rent for the bond. The exact amount is negotiated before the lease starts, and your property manager must agree on the amount. Once agreed, Tenancy Services will hold your bond. If everything goes smoothly, you will get all of it back when you move out.
Tips to Ensure You Get Your Bond Back
Attend the Property Inspection: Be present at the property inspection when you move in. The resulting report will detail the condition of the property. Ensure any pre-existing damage is documented in your lease.
Document the Property Condition: Take photos or videos as extra evidence of the property's condition when you move in.
Report Issues Promptly: If you notice any damage or problems after moving in, inform your property manager immediately to avoid being blamed later.
The Bond Lodgement Process: When you sign your lease, your property manager will have you fill in a bond lodgement form. This form must be sent to Tenancy Services, and they are required to lodge your bond within 23 working days. You will receive a letter shortly after confirming that your bond is safely held with Tenancy Services.
Getting Your Bond Back When You Move Out
When you move out, your property manager will inspect the property. If there are no issues and your rent is paid up, both you and your landlord must fill out a bond refund form and submit it to Tenancy Services. Refunds are typically processed within a few working days.
Handling Bond Disputes
If there’s a disagreement about the bond refund amount, address it immediately. Even if there is a dispute, either party can submit a bond refund form to Tenancy Services, who will then contact the other party to try and resolve the issue. If an agreement can't be reached, the dispute may go to mediation or the Tenancy Tribunal, which could delay the refund process.
Transferring Your Bond
If you're moving and want to transfer your bond, both your old and new landlords must agree. You can ask your property manager about this process, which typically takes about 10 days.
